Hickory Company manufactures two products13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labour-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: (The total estimated overhead cost may not agree with the sum of allocated overhead costs to each product.)

Activity Cost Pool	Activity Measure	Estimated Overhead Cost	Expected Activity
Machining	Machine-hours	$	249,600	12,000		MHs
Machine setups	Number of setups	$	162,400	280		setups
Production design	Number of products	$	92,000	2		products
General factory	Direct labour-hours	$	309,600	12,000		DLHs

Activity Measure	Product Y	Product Z
Machining	7,800	4,200
Number of setups	40	240
Number of products	1	1
Direct labour-hours	8,800	3,200

Required:

Which of the four activities is a batch-level activity?

multiple choice

Machine setups activity

Product design activity

Machining activity

General factory activity